Affiliate Marketing vs Dropshipping (with Aliexpress) – Which Online Business Method Is Best?

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hey guys in this video we’re gonna be talking about which one is better at Philly marketing or drop shipping with Aliexpress after our last video where I talked about how we make over $500 a day passively from affiliate marketing with this channel we had a lot of people ask us which business model is best so in this video I’m gonna be answering the following questions one which we said is easiest for beginners to make money with – which method makes the most money 3 which method is the most passive and truly makes money in your sleep and as you’re gonna discover there’s no one that’s better than the other they’re quite different and they each have their own advantages and disadvantages so let’s jump straight into it we’re gonna start out there by quickly looking at what each of the different business models are and how they make their money we’ll start out with affiliate marketing in this business model it is your go to refer customers or clients to another business and if they make a purchase from them you get a commission for example here is an affiliate website that I have highlighted before on this channel numerologist comm now I’m gonna go on the record and state that I myself am NOT interested in numerology or anything like that I have simply chosen to highlight them because they have one of the biggest and most profitable affiliate offers on the Internet they have several products that they sell on their website their most popular product is a personalized report based off your name and your date of birth and it cost $77 well if you sign up to their affiliate program and refer customer to them you get a 65 percent commission on that $77 sale price the way that you refer customers to them is that they give you what is called a hot link a link with a tracking code embedded in it and when someone clicks on that link and purchases the report you get that commission on the sale so obviously your goal here is to get as many people as you can to click on the link and then purchase the report so you might start making youtube videos about it you might start up a blog about numerology you might even choose to run paid ads to it though as I’m gonna talk about later that’s a little bit more tricky with affiliate marketing now let’s look at how you can make money with aliexpress drop shipping this is when you set up an online store using a platform like Shopify and you list products for sale in it that are being sold on Alex brisk calm Aliexpress is a website that lets you buy items individually directly from manufacturers they’re based in China so their prices are super cheap so what you do is you take an item on Aliexpress and you list it in your store and put a huge markup on the price you then run paid ads to your store with Facebook ads usually being the best as they are low-cost yet highly targeted and then when customers come to your store and purchase the items in it you then go to Aliexpress and purchase the item that the customer bought and get it shipped directly to them while keeping the difference in profit this process is called drop shipping as you can see both of these business models are extremely different and they each have their own strengths and weaknesses so take a look at how each of them work and think about which one looks the most fun and interesting to you and which one would play off your strengths more which method is the easiest for beginners to make money as I’ve said before on this channel one of the challenging aspects to starting an online store is that nobody knows who you are when you advertise your store to someone on Facebook you are asking them to come on in and buy an item from you despite not knowing who you are despite the fact that you have built up no trust or credibility with them and here is the advantage for affiliate marketing for beginners your merchant has most likely already done this part for you and has built up a lot of trust and credibility take numerologist calm they have invested an amazing domain name they have an enormous Facebook page with hundreds of thousands of followers they have huge amounts of free content on their site and they even have invested tens of thousands of dollars into creating quizzes like their life path calculator when you’ve seen the customer to numerologist com you have the benefit of the brand and the trust that they have built which will make converting sales easier on the other hand with affiliate marketing running paid traffic can be a bit of a challenge especially if you’re trying to direct that traffic directly at your offer and that’s pretty important to keep in mind because as we’ve discussed on this channel while free traffic is great to have it is slow and you also need to learn extra skills like search engine optimization thus pay traffic is usually the fastest and easiest way for beginners to start making money online now consider this when your drop shipping you have huge margins to work with so you can make a lot of profit per sale take this little dreamcatcher necklace here on Aliexpress you can purchase it for a dollar and two cents when you add the cost of fast a packet shipping which is two dollars and thirteen cents the total that you will pay the dropship this item is three dollars and fifteen cents well necklaces like this can sell for ten dollars easy so that gives you an almost seventy percent margin to work with when spending money on ads on the other hand while numerologist does admittedly have a very high commission rate of sixty five percent the vast vast majority of online products and offers do not have commission rates that high usually the upper limit is fifty percent that means in that you’ve got a much smaller margin to work with when you’re running paid ads to your affiliate offers plus if an affiliate offer is a particularly high converting one then it’s going to become saturated very quickly with affiliates trying to run paid ads for it so if you choose affiliate marketing and you get the bonus of the fact that your affiliate merchant has gone ahead of built up brand awareness and Trust which will make it easier to get higher conversions but with drug shipping you have the advantage that you have bigger margins to spend on paid ads and plus it’s likely that your niche is less saturated to which method makes the most money now both methods can make huge amounts of money and when I say huge amounts of money I mean millions of dollars every year something to keep in mind though is that while yes with affiliate marketing you can earn super high commissions you are ultimately giving your customers to your affiliate partner which in this industry will refer to as the merchant here’s what I mean let’s say that you’re going into the numerology or New Age nation you plan to sell items in it and you’ve got two options to pick from option one create a website that recommends numerologist comms reports option to create an Aliexpress drop shipping store that sells released items and accessories well here’s the thing if you chose option one then you will make fast commissions at the price though of giving up your customers information to your merchant partner and you know what they will do they will use that information like their email to market to them again and again and again to show you what I mean I went ahead and purchased a personalized report from numerologist com within a week of buying I had received multiple emails from them like many other affiliate merchants they don’t just plan on making money from one of sales they turn their customers into loyal followers and repeat buyers as an affiliate then you are constantly on the treadmill of making one-off sales because the moment that you send your customer to an affiliate partner is the moment that you lose them but if you had chosen option two and built a dropshipping store then this wouldn’t happen to you why well it’s because when someone comes into your store and buys this necklace from you it’s you that gets your customers details it’s you that gets your email addresses it’s you that gets to build up a list of people that you know are interested in buying new agey type items like this which means that it’s you that gets to see and follow up emails to customers recommending that they purchase more items from you you know that they like your color-changing dreamcatcher necklace so there’s a good chance that they’re like these other necklaces as well but you know what you can do after a few weeks or maybe even a month after your customer has purchased this item from you and you’ve been recommending other ones to them you can send out an email to them that says hey we’ve found this great personalized report that takes your name and birthdate and uses that to identify your strengths weaknesses and even predict the future click on this link to get your own personalized report now so now you get to combine dropshipping and affiliate marketing together you get to take advantage of the super high commissions after you’ve given yourself some time to upsell more items to them a lot of people don’t think about the importance of retaining your buyer list and as a drop shipper you get to do this and it is crucial for making long-term money because what you can do is you can take that list of buyers and you can remark it to them again and again and again you can turn your customers and to repeat buyers which metric is the most passive I will be upfront here there is a clear winner here affiliate marketing is usually a lot more passive than drop shipping is which is a major reason why we have diversified into it and the reason why a Philly marketing is the clear when I hear is because of the issue of order fulfillment consider this and the state of my video last week here on YouTube we’ve got several videos that Ernest over $500 a day in commissions well here’s the thing if I got into a car accident tomorrow and I was B of redden while still recovering those videos would still be getting traffic to them every day people will be watching those YouTube videos and everyday people will be clicking on the affiliate links in the video descriptions and everyday people will be purchasing those products all of us would be happening automatically it doesn’t matter that I’m trapped in a hospital bed this would all be happening on autopilot on the other hand let’s compare that to a drop shipping store I’ve got my store up I’m running Facebook Ads to it I’m seeing traffic to my store and it’s converting people are buying items which is great I am making money but I need to fulfill those orders as soon as possible when someone purchases an item from me I need to go to Aliexpress and order the item and get it shipped out to the customer and this process is called order fulfillment now this process admittedly takes me in minutes especially if you’re using a semi-automated at Plake over low but someone every day still needs to come in and fulfill each of those orders and plus you will also need to reply to customers emails each day as well but with affiliate marketing you don’t have to worry about any of that it’s numerologist com that sends the customer their reports and it’s numerologist calm that answers the customer’s emails and they answer a lot of emails now don’t worry you can still turn a dropshipping store into an automated asset by hiring someone to run your store for you and to run your ads and in reality if your store is doing around a thousand to two thousand dollars a day in sales then if you’ve got a semi-automated app like Oh below it’s probably only going to take one to two hours a day to manage so it’s not a huge time sink but it doesn’t compare to affiliate marketing which is passive from the get-go with an automated traffic funnel in place you can literally make money in your sleep so as you can see while both business models are great they each have their own pros and cons so weigh them both up and pick the one that’s right for you and if you think affiliate marketing sounds great then we’ve got some super exciting news we are running one final webinar with some of the top affiliates in the world on this webinar they will be teaching you how to make over $1,000 a day on autopilot with affiliate marketing Wow using fast low-cost paid traffic yes with their missus you can skip one of the downsides of affiliate marketing if you’d like to sign up for that webinar then the registration link is in the video description below please be aware registration is essential we will not be streaming up on YouTube and if you think that drop shipping sounds exciting then you should be sure to download our free ebook which teaches you the six steps that six-figure drop shipping stores years to earn over ten thousand dollars every month you can find a link on how you can get that in the video description below